Elardo, Bragg, Appel & Rossi

Legislative Update – Effective August 2, 2012

HB 2154 – CHILD RESTRAINT SYSTEMS – AMENDING A.R.S. § 28-907. Requires automobile passengers that are five to seven years of age and who are not more than 4’9” to be restrained in a “child restraint system.” Further expands the list of exemptions from child restraint systems to include authorized emergency vehicles transporting a child for medical care.

SB1134 – AUTOMOBILE INSURANCE; NOTICE TO INSURED – AMENDING A.R.S. § 20-1632. Requires an insurer to either mail the notice and refund of the unearned premium together at least 10 days before the effective date, or mail the notice before the refund if both the notice and the refund are mailed separately to the insured at least 10 days before the effective date. Specifies that an insurer’s affiliate must collect and remit a premium on the insurer’s behalf in the case of a notice of cancellation or nonrenewal.

SB 1153 – RENTAL CARS; LIABILITY INSURANCE; SUBROGATION – AMENDING A.R.S. § 28-2166. Rental car owners have a right of subrogation against the renter’s insurer for damage and injury claims that have been paid by the owner as excess to all damages sustained by the claimant. The rental car owner’s public liability insurance is not required to be primary coverage if it is disclosed in the rental agreement that the owner does not extend any of its coverage to the renter or other drivers, or if the renter purchased public liability insurance from the owner that provides coverage to the renter and authorized drivers. Rental car owners are required to respond to a third party claim, provide financial responsibility and provide a defense for all claims for damages or liability arising out of an accident caused by the renter if the renter does not have any other liability coverage applicable to the loss, up to the owner’s coverage limits. NOTE: Effective November 1, 2012.